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Table of Contents |
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Introduction |
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Chapter 1: |
What is Insurance? |
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- Q 1.1 : What are the basic types of insurance?2
- Q 1.2 : How is life insurance defined?2
- Q 1.3 : What is an annuity?2
- Q 1.4 : What is accident and health insurance?2
- Q 1.4.1 : Can accident and health insurance be written by a life insurer?3
- Q 1.5 : What is disability insurance?3
- Q 1.6 : What is property insurance?3
- Q 1.7 : What is fire insurance?3
- Q 1.8 : What is liability insurance?3
- Q 1.9 : What is casualty insurance?4
- Q 1.10 : What is workers’ compensation insurance?4
- Q 1.11 : What is surety?4
- Q 1.12 : What is fidelity insurance?4
- Q 1.13 : What is financial guaranty insurance?5
- Q 1.14 : What is credit insurance?5
- Q 1.15 : What is credit life insurance?6
- Q 1.16 : What is marine and aviation insurance?6
- Q 1.17 : What is inland marine insurance?7
- Q 1.18 : What are “personal lines” insurance and “commercial lines” insurance?7
- Q 1.19 : What is catastrophe insurance?8
- Q 1.20 : Given the broad definition of insurance cited above, are there nevertheless exemptions to what constitutes insurance under state law?8
- Q 1.20.1 : What are some examples of exemptions from the definition of insurance?8
- Q 1.21 : What is an insurance policy?8
- Q 1.22 : What are the types of insurance policies?8
- Q 1.23 : What are the standard components of an insurance policy?9
- Q 1.24 : How are insurance policies interpreted?9
- Q 1.25 : there such a thing as a reinsurance policy?9
- Q 1.26 : What is reinsurance?10
- Q 1.27 : What types of reinsurance are there?10
- Q 1.27.1 : What is treaty reinsurance?10
- Q 1.27.2 : What is facultative reinsurance?10
- Q 1.28 : Can any company act as a reinsurer or does it require a special license?11
- Q 1.29 : Can a company reinsure both life and property and casualty risks?11
- Q 1.30 : What is “fronting”?11
- Q 1.30.1 : Is fronting illegal?12
- Q 1.31 : What is the difference between indemnity reinsurance and assumption reinsurance?12
- Q 1.32 : What is a retrocession agreement?13
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Chapter 2: |
State-Based Regulation of Insurance |
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- Q 2.1 : Why is insurance in the United States regulated by the states?16
- Q 2.2 : Given the fact that each state regulates the business of insurance, as permitted under McCarran-Ferguson, what does it mean to say that the United States has a “national system of state-based regulation”?17
- Q 2.3 : How does the system of promulgating NAIC Model Laws and Regulations actually work to effectuate uniform state statutes and regulations?18
- Q 2.4 : Do the states adopt the NAIC Models in a form that is word-for-word the same as the Model which the NAIC approved?19
- Q 2.5 : Does the NAIC have any power to influence which Model Laws and Regulations are adopted by the states?20
- Q 2.6 : Which states are accredited by the NAIC?20
- Q 2.7 : What are the NAIC Model Laws and Regulations that states are required to adopt in order to be accredited by the NAIC?20
- Q 2.8 : Are there any additional provisions that states are required to adopt in order to be accredited by the NAIC?21
- Q 2.9 : How does the NAIC accounting system work?22
- Q 2.10 : Is SAP different from Generally Accepted Accounting Principles, or GAAP?23
- Q 2.11 : How does the SVO affect insurance companies?24
- Q 2.12 : What is Risk-Based Capital, or RBC, for insurance companies?24
- Q 2.13 : How does RBC for insurance companies work?25
- Q 2.14 : What are some recent examples of initiatives by the NAIC that demonstrate the ability of the NAIC and the various states to act or react quickly to emergency or emerging issues?26
- Q 2.15 : What is the NAIC doing to communicate and coordinate with insurance regulators in other countries?27
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Chapter 3: |
Form of Insurer |
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- Q 3.1 : What is a stock insurance company?30
- Q 3.2 : Can a stock insurer be a public company?30
- Q 3.3 : What is a mutual insurance company?31
- Q 3.4 : How does a mutual insurance company elect directors if there are no stockholders?31
- Q 3.5 : Other than ownership and election of directors, are there other differences between stock and mutual companies?31
- Q 3.6 : Can a mutual insurer become a stock insurer?32
- Q 3.7 : Why would a mutual company demutualize?32
- Q 3.8 : Why might a company prefer to remain a mutual?32
- Q 3.9 : What happens in a demutualization?33
- Q 3.10 : Do stock companies ever mutualize?34
- Q 3.11 : Are there any other forms of conversion involving mutual insurers?34
- Q 3.12 : What are the advantages and disadvantages of converting to an MHC structure?35
- Q 3.13 : What is a reciprocal insurer?36
- Q 3.14 : Do all states authorize the formation of reciprocal insurers?37
- Q 3.15 : What is a fraternal benefit society?37
- Q 3.15.1 : Are fraternal benefit societies subject to federal income taxation?38
- Q 3.16 : What is Lloyd’s?38
- Q 3.17 : Who are the Members of Lloyd’s?39
- Q 3.17.1 : Do Members have capital and surplus?39
- Q 3.18 : How is Lloyd’s regulated?39
- Q 3.19 : Given that the Members underwrite insurance on a strictly several, not joint, basis, what would happen if a Member is unable to pay losses on its business?40
- Q 3.20 : Does Lloyd’s operate in the United States?40
- Q 3.21 : Who is the lead regulator of Lloyd’s in the United States?40
- Q 3.22 : What is Lloyd’s status in the United States?41
- Q 3.23 : Does Lloyd’s or do the Members maintain trust deposits in the United States?41
- Q 3.24 : United States insurers in Texas and some other states have some version of the word “Lloyd’s” in their names. Are these insurers affiliated with Lloyd’s?42
- Q 3.25 : What are risk retention groups (RRGs) and risk purchasing groups (RPGs)?43
- Q 3.26 : How may RRGs and RPGs be formed and conduct business?43
- Q 3.27 : What are the benefits of forming an RRG or RPG?44
- Q 3.28 : Are RRGs and RPGs regulated on a federal level?45
- Q 3.29 : Are RRGs covered by state guaranty funds?46
- Q 3.30 : Can RRGs and RPGs handle any kind of insurance?46
- Q 3.31 : Are there any restrictions on ownership?46
- Q 3.32 : Are there any current developments of importance?46
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Chapter 4: |
Licensing of Insurance Companies |
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- Q 4.1 : Why is it necessary for insurance companies to be licensed?48
- Q 4.2 : How do the states define “transaction of insurance”?48
- Q 4.3 : How do insurance companies obtain licenses in the states in which they seek to transact insurance?50
- Q 4.4 : Does the insurer have to repeat this licensing process in each state in which it wishes to transact insurance?50
- Q 4.4.1 : How long does it take to become licensed in all states?51
- Q 4.5 : What are “seasoning” rules?51
- Q 4.6 : Can seasoning requirements ever be waived?52
- Q 4.7 : Do insurance regulators penalize insurers that fail to comply with licensing requirements?52
- Q 4.8 : Do state insurance laws impose specific taxes on insurance premiums derived within the state?53
- Q 4.9 : Do state insurance laws impose restrictions on who may own or control an insurance company licensed in the state?54
- Q 4.10 : Are there restrictions on government ownership of insurers?54
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Chapter 5: |
Nonadmitted Insurance Market |
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- Q 5.1 : What is nonadmitted insurance and how does it differ from admitted insurance?56
- Q 5.2 : How is nonadmitted insurance regulated?56
- Q 5.3 : What does it mean to “transact insurance” in the state?57
- Q 5.4 : Can producers who place business with, or otherwise aid, nonadmitted insurers also be charged with a violation of law?57
- Q 5.5 : What sanctions can be imposed for violations?58
- Q 5.6 : What is the “surplus lines law”? Why does it exist?58
- Q 5.7 : Can any nonadmitted insurer write surplus lines insurance or does the insurer need to qualify in some way?59
- Q 5.8 : Are surplus lines insurers subject to the same rate and form requirements as licensed insurers?60
- Q 5.9 : Are there any limits on the products which can be sold under the surplus lines law?61
- Q 5.10 : Are the policies obtained through the surplus lines market covered by state guaranty funds and are surplus lines insurers subject to guaranty fund assessments?62
- Q 5.11 : Do surplus lines insurers compete against licensed insurers?62
- Q 5.11.1 : What is a “diligent effort” or the “diligent search” test?62
- Q 5.11.2 : Is the diligent search test always required?62
- Q 5.12 : Besides an eligible or approved insurer and the diligent search, are there any more requirements or restrictions?64
- Q 5.13 : Are there specific exceptions to the general doing business prohibitions that are available for sophisticated buyers of insurance?65
- Q 5.14 : Are there other express exemptions from the doing business prohibitions for nonadmitted insurers?66
- Q 5.15 : Do the prohibitions against nonadmitted insurers transacting insurance in the state apply to reinsurance?66
- Q 5.16 : Can an insured procure insurance directly from a nonadmitted insurer?66
- Q 5.17 : Are insurance premiums taxed on nonadmitted insurance?67
- Q 5.18 : Which state’s law applies to the placement of multi-state risks?67
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Chapter 6: |
Licensing of Producers and Other Third Parties |
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- Q 6.1 : What requirements apply to an insurance “producer”?70
- Q 6.2 : What requirements apply to an insurance “agent”?70
- Q 6.3 : What requirements apply to an insurance “broker”?71
- Q 6.4 : What types of licenses are insurance producers, agents, and brokers required to have in order to transact business within a state?71
- Q 6.5 : Is there a special license for producers to place insurance with approved unauthorized, or surplus lines, insurers?72
- Q 6.6 : What can happen if a person engages in activities that are considered to be the activities of an insurance producer, agent or broker without a license in the state?72
- Q 6.6.1 : What types of activities constitute “soliciting” or “marketing” insurance products within a state?72
- Q 6.7 : Can licensed producers, agents and brokers assist insureds and insurers in handling and settling claims under insurance policies?73
- Q 6.8 : Is it possible to assist in the handling and settling of insurance claims if one is not a licensed insurance producer, agent, or broker?73
- Q 6.9 : What is an “insurance adjuster”?73
- Q 6.9.1 : What is a “public adjuster”? What is an “independent adjuster”?74
- Q 6.10 : What requirements apply to a “third-party administrator”(TPA)?74
- Q 6.11 : What requirements apply to a “managing general agent”(MGA)?75
- Q 6.12 : What requirements apply to a “reinsurance intermediary”?76
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Chapter 7: |
Regulation of Insurance Holding Company Systems |
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- Q 7.1 : How does the Insurance Holding Company Act (HCA) of the various states regulate insurance companies and insurance groups?79
- Q 7.2 : What is “commercial domicile”?80
- Q 7.3 : To determine whether an “acquisition of control” would occur, how does the HCA define “control”?81
- Q 7.4 : At what point must a potential acquiror of an insurance company file the Form A?82
- Q 7.5 : In what states must the Form A be filed?84
- Q 7.6 : What are the exemption provisions under the HCA for filing a Form A?84
- Q 7.7 : Are there statutory standards for approval of the Form A?84
- Q 7.8 : What information is required in a Form A?85
- Q 7.8.1 : Is the information provided on a Form A publicly available?87
- Q 7.9 : Is a public hearing on a Form A required?87
- Q 7.10 : How long does the process of obtaining Form A approval take?88
- Q 7.11 : Given that a Form A is required to be filed and approved before any person can acquire control of an insurance company, how does the HCA define “control”?88
- Q 7.12 : Is it possible for an investor to own more than 10% of the voting securities of an insurance company or an insurance holding company and not be viewed as “controlling” the insurance company?89
- Q 7.13 : Under what circumstances would an investor with more than 10% of the shares of an insurance company or insurance holding company seek to rebut the presumption of control?89
- Q 7.14 : How does the investor seek a determination of non-control from the insurance regulator?90
- Q 7.15 : Do all states presume control to exist at the level of 10% of the shares?90
- Q 7.16 : What types of rules or restrictions does a state’s HCA impose on transactions involving an insurer and members of its holding company system?90
- Q 7.17 : What other types of filings does the HCA require?92
- Q 7.18 : Are there restrictions on the ability of an insurer to pay dividends to its stockholder(s)?93
- Q 7.19 : What are the consequences of violating the HCA?94
- Q 7.20 : What types of information from parent companies and other affiliates are required under the Model Law Amendments?95
- Q 7.21 : Were there other significant requirements under the Model Law Amendments?95
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Chapter 8: |
Regulation of Life and Annuity Insurers |
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- Q 8.1 : How does a life insurance company become licensed to transact insurance in a particular state?98
- Q 8.2 : What lines of insurance are life insurers authorized to transact?99
- Q 8.3 : What is the definition of life insurance?100
- Q 8.4 : Are there different types of life insurance?100
- Q 8.5 : What is the definition of annuity?101
- Q 8.6 : Are there different types of annuities?102
- Q 8.7 : Are life insurance policies and annuity contracts issued only to individuals?104
- Q 8.8 : How are life insurance and annuity contracts taxed?105
- Q 8.9 : What restrictions exist on the marketing and advertising of life insurance and annuity products?105
- Q 8.10 : Why are certain variable annuity and life products regulated as securities under the federal securities laws?107
- Q 8.11 : How are insurance company separate accounts regulated under the “1940 Act”?108
- Q 8.12 : How are variable insurance products regulated under the Securities Act of 1933 (the “1933 Act”)?109
- Q 8.13 : What other insurance products may be regulated as securities under the federal securities laws?111
- Q 8.14 : Who may sell an insurance product that is a security?112
- Q 8.15 : Are there restrictions on permissible commissions for insurance agents and brokers?112
- Q 8.16 : Are life insurers required to file their rates and forms?112
- Q 8.17 : What is the Interstate Insurance Compact?113
- Q 8.18 : How many states have adopted and entered into the Interstate Compact?113
- Q 8.19 : What is the practical effect for companies in the states in which the Interstate Compact has been adopted?114
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Chapter 9: |
Regulation of Property and Casualty Insurers |
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- Q 9.1 : How does a property and casualty insurer become licensed to transact insurance in a particular state?116
- Q 9.2 : What lines of insurance are property and casualty insurers authorized to transact?116
- Q 9.3 : Can an insurer be authorized to transact all lines of property and casualty insurance?117
- Q 9.4 : In order to write a specific line of property and casualty insurance in a state, must an insurer be specifically licensed for that line in that state?118
- Q 9.5 : What is the difference between “personal lines” and “commercial lines” of insurance?118
- Q 9.6 : How are property and casualty insurance products regulated?119
- Q 9.7 : What is commercial lines deregulation?119
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Chapter 10: |
Regulation of Monoline Insurers |
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- Q 10.1 : Is there a statutory definition of “monoline” insurer, or is the term one of common industry usage?122
- Q 10.2 : Why are financial guaranty insurers, mortgage insurers and title insurers regulated as monolines?122
- Q 10.3 : What activities constitute the business of “financial guaranty insurance”?123
- Q 10.4 : What minimum capitalization is required for financial guaranty insurers?125
- Q 10.5 : Are financial guaranty insurers subject to reserving requirements in addition to those generally imposed on property/casualty insurance companies?126
- Q 10.6 : Are financial guaranty insurers subject to single risk limitations?127
- Q 10.7 : Are financial guaranty insurers subject to aggregate risk limitations?127
- Q 10.8 : Are financial guaranty insurers subject to requirements pertaining to ceded reinsurance that differ from those generally imposed on property/casualty insurance companies?128
- Q 10.9 : What activities constitute the business of “mortgage guaranty insurance”?128
- Q 10.10 : What minimum capitalization is required for mortgage insurers?129
- Q 10.11 : Are mortgage insurers subject to reserving requirements in addition to those generally imposed on property/casualty insurance companies?130
- Q 10.12 : Are mortgage insurers subject to single risk limitations?130
- Q 10.13 : Are mortgage insurers subject to aggregate risk limitations?131
- Q 10.14 : Are mortgage insurers subject to requirements pertaining to ceded reinsurance that differ from those generally imposed on property/casualty insurance companies?131
- Q 10.15 : What activities constitute the business of “title insurance”?132
- Q 10.16 : What minimum capitalization is required for title insurers?133
- Q 10.17 : Are title insurance companies subject to reserving requirements in addition to those generally imposed on property/casualty insurance companies?133
- Q 10.18 : Are title insurance companies subject to single risk limitations?134
- Q 10.19 : Are title insurance companies subject to requirements pertaining to ceded reinsurance that differ from those generally imposed on property/casualty insurance companies?135
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Chapter 11: |
Regulation of Reinsurance |
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- Q 11.1 : What is reinsurance?137
- Q 11.2 : Who are the parties to a reinsurance contract?138
- Q 11.3 : Are reinsurance contracts regulated?138
- Q 11.4 : Are reinsurers regulated?140
- Q 11.5 : Do states require reinsurers to be licensed or authorized in order to transact reinsurance business in the state?141
- Q 11.6 : Why would a reinsurer want to be licensed in a state if reinsurance is generally exempt from the licensing requirement? Why would reinsurers want to be licensed in more states than their state of domicile?141
- Q 11.7 : If a reinsurer is not licensed in the state of domicile of its ceding insurer, is there any other way for the ceding insurer to obtain credit for the reinsurance?142
- Q 11.8 : Are there rules governing the collateral in these circumstances?143
- Q 11.9 : Are there any reforms that would reduce the amount of collateral required from non-U.S. reinsurers in order for their ceding insurers to be able to take balance sheet credit for reinsurance with such reinsurers?145
- Q 11.10 : Are there other mechanisms pursuant to which a ceding insurer is allowed to take financial statement credit for the amount of reinsurance that it expects to recover from an unlicensed reinsurer?147
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Chapter 12: |
Regulation of Health Insurers and Health Maintenance Organizations |
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- Q 12.1 : How are health insurance companies organized and licensed?150
- Q 12.2 : Can a life insurer or a property and casualty insurer be licensed to transact health insurance?150
- Q 12.3 : Do health insurance policies have to be filed with the Insurance Commissioner?150
- Q 12.4 : Are rates of health insurers filed with the Insurance Commissioner?151
- Q 12.5 : What kinds of products do health insurers provide?151
- Q 12.6 : What are some of these rules for products issued to a group?151
- Q 12.6.1 : Does a group have to consist of an employer/employee group?152
- Q 12.7 : What is individual insurance?153
- Q 12.8 : Are there advantages to being insured under a group versus an individual health insurance policy?153
- Q 12.9 : What other categories define health insurance offerings in the United States?154
- Q 12.10 : What about less comprehensive health insurance products?154
- Q 12.11 : What are HMOs and how are they regulated?154
- Q 12.12 : How has ACA affected the state regulation of health care insurance?155
- Q 12.13 : What are some of these changes affecting health care insurance?155
- Q 12.14 : What does “essential health benefits” mean?155
- Q 12.15 : Are there any other requirements that these “essential health benefits” must provide?156
- Q 12.16 : Which insurance companies are required to provide these “essential health benefits” in 2014?156
- Q 12.17 : How does ACA use the terms “group” coverage and “individual” coverage for these purposes? Do the terms mean the same things as they do under state rules relating to group and individual health insurance coverage?156
- Q 12.18 : What other provisions of ACA are required to become effective on January 1, 2014?157
- Q 12.18.1 : What does “minimum essential coverage” mean for purposes of satisfying the individual mandate?158
- Q 12.19 : Is January 1, 2014, the only trigger date for ACA reforms that health insurers must be aware of?159
- Q 12.20 : What types of reforms were insurers required to comply with by September 23, 2010?159
- Q 12.21 : What types of provisions are required effective January 1, 2011?160
- Q 12.22 : What is the definition of “excepted benefits” that fall outside the scope of the various reforms contained in ACA?161
- Q 12.23 : How will ACA affect the cost of health insurance?162
- Q 12.24 : Will the state Insurance Departments continue to be involved in the regulation of health insurance and health insurers?163
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Chapter 13: |
Impact of Other Regulators on Insurance Regulation |
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- Q 13.1 : If federal law leaves to the states the regulation of the business of insurance, how can any governmental agencies, other than state Insurance Departments, affect the regulation of insurance?166
- Q 13.2 : How will Dodd-Frank affect insurance regulation?166
- Q 13.3 : What does Dodd-Frank say about FIO?167
- Q 13.4 : Beyond these monitoring and data analysis functions, does FIO have any substantive responsibilities under Dodd-Frank?168
- Q 13.5 : How does Dodd-Frank affect the regulation of reinsurance and surplus lines insurance?168
- Q 13.5.1 : How does NRRA affect the regulation of reinsurance?169
- Q 13.5.2 : How does NRRA affect the regulation of surplus lines insurance?169
- Q 13.6 : Are there any other ways in which Dodd-Frank will affect insurance companies?170
- Q 13.7 : What are some of the federal laws relating to foreign trade that affect insurance regulation?173
- Q 13.7.1 : Are there other restrictions affecting Iran in particular?173
- Q 13.8 : What other federal laws affect U.S. companies in their business activities?175
- Q 13.9 : Chapter 8, regarding the regulation of life and annuity insurers, noted that certain products offered by annuity and life insurance writers must be registered with the SEC; are there other ways in which the SEC regulates insurance companies?176
- Q 13.10 : Do state attorneys general have authority to enforce insurance laws?177
- Q 13.11 : Are insurance companies subject to antitrust laws?177
- Q 13.11.1 : Can the “business of insurance” ever be subject to federal antitrust laws?178
- Q 13.11.2 : Aside from the three exemptions mentioned above, can we assume that the federal antitrust laws never apply?178
- Q 13.12 : Why do the federal antitrust authorities support a repeal of the McCarran-Ferguson Act?178
- Q 13.13 : As a practical matter, what does the McCarran-Ferguson exemption allow?179
- Q 13.14 : Are there any other important antitrust exemptions?179
- Q 13.15 : Q 13.15 Do federal and state antitrust laws affect market concentration in the industry?179
- Q 13.16 : Q 13.16 Are there other federal laws that affect the regulation of insurance companies?180
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Chapter 14: |
Regulation of Insurance Company Financial Condition |
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- Q 14.1 : What requirements do the insurance laws impose on the minimum amount of capital an insurance company is required to have and maintain?182
- Q 14.2 : What is the practical effect of these minimum capital and surplus requirements for insurance companies?183
- Q 14.3 : Are paid-in capital and paid-in surplus the only ways in which insurers can receive operating capital?183
- Q 14.3.1 : What is a surplus note?183
- Q 14.4 : Are shareholder dividends by insurance companies regulated?184
- Q 14.5 : How do Insurance Commissioners monitor and regulate the insurance liabilities of insurance companies?184
- Q 14.6 : How does the state-based system of insurance regulation assure that insurance company financial statements are prepared in accordance with consistent and uniform standards?185
- Q 14.6.1 : Are there any state variants from these uniform practices?186
- Q 14.7 : How is RBC used by regulators to determine the financial condition of insurance companies?186
- Q 14.8 : What laws govern financial examinations?187
- Q 14.9 : How often may Insurance Departments conduct financial condition examinations?187
- Q 14.10 : How do different states work together on examinations?188
- Q 14.11 : What type of information or documents must the insurer under examination make available for inspection to the examiners?188
- Q 14.12 : Who bears the cost of an examination?189
- Q 14.13 : Do the Insurance Commissioner’s examination powers extend beyond the licensed insurer?189
- Q 14.14 : Does the Insurance Commissioner have the power to take testimony in connection with a financial examination?189
- Q 14.15 : Is the financial examination conducted strictly by insurance regulators, or can the Insurance Commissioner retain other individuals to assist with the examination?190
- Q 14.16 : What type of information typically appears in the examination report that is prepared by the examiners?190
- Q 14.17 : Are examination reports available to the public?191
- Q 14.18 : Does the insurer see the examination report before it is issued?191
- Q 14.19 : Can an insurer contest the findings that appear in a report on examination?191
- Q 14.20 : Is the insurer required to accept the report?192
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Chapter 15: |
Insolvency and Restructuring |
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- Q 15.1 : Are insurance companies subject to federal bankruptcy law?194
- Q 15.2 : Does this exemption extend to the parents or affiliates of insurance companies?194
- Q 15.3 : Are corporations licensed as insurance agents, brokers, etc. also exempt from federal bankruptcy?195
- Q 15.4 : What happens to an insurance company that is in financial difficulty if Chapter 11 and Chapter 7 of the federal bankruptcy law are not available?195
- Q 15.5 : What is a “delinquency proceeding” under state insurance insolvency law?195
- Q 15.6 : What are the grounds upon which the Insurance Commissioner may seek an order to liquidate, rehabilitate or conserve an insurer?196
- Q 15.7 : Are there statutory limits on these grounds for initiating delinquency proceedings against an insurer?196
- Q 15.8 : What happens when the Insurance Commissioner obtains a finding from state court that an insurer must be placed into delinquency proceedings?197
- Q 15.9 : What does it mean for the Insurance Commissioner to be granted an order of “conservation” over an insurer?197
- Q 15.10 : What does it mean to place an insurer into rehabilitation?198
- Q 15.11 : What determines whether an Insurance Commissioner will seek an order to liquidate an insurer?198
- Q 15.12 : What does the Insurance Commissioner as liquidator of an insurer do?199
- Q 15.13 : What happens to policyholder claims in liquidation?199
- Q 15.14 : Do policyholders have any other recourse for payment of their policy claims?199
- Q 15.15 : Who provides the funds that are administered by the guaranty associations?200
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Chapter 16: |
Regulation of Investments by Insurance Companies |
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- Q 16.1 : Why do state insurance laws regulate investments made by insurers?202
- Q 16.2 : How do state insurance laws regulate investments made by insurers?202
- Q 16.3 : Is there an NAIC model law on insurance company investments?202
- Q 16.4 : Which version of the NAIC model law in investments do most states follow?203
- Q 16.5 : How does New York impose its investment law on non-domestic insurers?203
- Q 16.6 : If the insurer is not domiciled in New York, how can that state impose its rules, even with a statute that requires “substantial compliance” with the New York laws?204
- Q 16.7 : What types of rules on insurer investments are imposed by New York law?204
- Q 16.8 : What is the difference between “admitted” and “permitted” assets?205
- Q 16.9 : Do insurer investment statutes authorize insurers to engage in derivatives transactions?205
- Q 16.10 : How are investments valued for purposes of annual financial statement filing?206
- Q 16.11 : What impact does an insurer’s investments have on its risk-based capital?206
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Chapter 17: |
Regulation of Market Conduct and Trade Practices |
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- Q 17.1 : What laws govern market regulation?208
- Q 17.2 : What do market conduct examinations and enforcement typically focus on?208
- Q 17.3 : What type of information or documents must the insurer that is being examined make available to the examiners for inspection?209
- Q 17.4 : What do Insurance Commissioners do with their findings?209
- Q 17.5 : Can the examination findings be contested?210
- Q 17.6 : Is there a NAIC model law on unfair trade practices?210
- Q 17.7 : What types of practices typically constitute “unfair trade practices” in the business of insurance?210
- Q 17.8 : Do rules relating to unfair trade practices apply only to insurers?211
- Q 17.9 : What are the consequences if the Insurance Commissioner finds that an insurer or person has engaged in an unfair trade practice?211
- Q 17.10 : Is there a model NAIC law on unfair claims practices?212
- Q 17.11 : What types of practices typically constitute “unfair claims practices” in the business of insurance?212
- Q 17.12 : What are the consequences if the Insurance Commissioner finds that an insurer or other person has engaged in an unfair claims practice?212
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Chapter 18: |
Privacy |
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- Q 18.1 : What is the legal framework in the United States governing data privacy in the insurance industry?213
- Q 18.2 : What are the general requirements under GLB?214
- Q 18.3 : How many states have adopted the Model Privacy Act, and what are the basic requirements?215
- Q 18.4 : How many states have adopted the Model Privacy Regulation, and what are the basic requirements?216
- Q 18.5 : How many states have adopted the Model Safeguarding Regulation, and what are the basic requirements?217
- Q 18.6 : What are the requirements under state breach notification laws?217
- Q 18.7 : What other state laws govern information privacy and security?219
- Q 18.8 : What are the special requirements with respect to affiliate-sharing under FCRA and in California?219
- Q 18.9 : What are the information privacy requirements under HIPAA?221
- Q 18.10 : Are there federal breach notification requirements?222
- Q 18.11 : What other federal laws and regulations address information privacy and security?223
- Q 18.12 : How are social media, cloud computing, mobile marketing and other emerging technologies services affecting information privacy risks for insurance companies?224
- Q 18.13 : What additional privacy issues should be considered by U.S. insurance organizations doing business abroad?225
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Chapter 19: |
International Regulation Affecting U.S. Insurers |
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- Q 19.1 : How do U.S. insurance regulators work and exchange information with regulators in other nations?228
- Q 19.2 : What is the IAIS and how does it affect insurance regulation in the United States?230
- Q 19.3 : What form of regulatory guidance does the IAIS issue?231
- Q 19.4 : How is the United States involved in IAIS activities?231
- Q 19.5 : What is ComFrame and how is the United States involved in ComFrame?231
- Q 19.6 : What is Solvency II?232
- Q 19.7 : What impact could Solvency II have on U.S. insurers?233
- Q 19.8 : Who makes the “equivalence” determination and what is the process for making that determination?235
- Q 19.9 : Will the United States be assessed for “equivalence”?236
- Q 19.10 : What are International Financial Reporting Standards, or IFRS, and how do they affect U.S. insurance regulation?236
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Chapter 20: |
Emerging Issues |
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- Q 20.1 : What are the dominant themes or trends in insurance regulation in the coming years?240
- Q 20.2 : Starting with reference to some of the recent federal laws and developments, is it still fair to say that insurance is a “state-based” system of national regulation?241
- Q 20.3 : In addition to these federal statutes, what other regulatory issues are emerging in the United States?242
- Q 20.4 : How will developments in international insurance regulation affect the insurance industry in the United States?242
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Index |
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